Strong monsoon and farm optimism fuel 10.5% sales surge, exports rise nearly 7%.
10 Jul 2025 | 5471 Views | By Yukta Mudgal
India’s domestic tractor industry recorded a strong performance in June 2025, selling 1.13 lakh units—10.5% more than last year—according to data from the Tractor and Mechanization Association. This is the first time monthly sales have crossed the 1 lakh mark since October, when they were at 1.45 lakh.
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India’s domestic tractor industry recorded a strong performance in June 2025, selling 1.13 lakh units—10.5% more than last year—according to data from the Tractor and Mechanization Association. This is the first time monthly sales have crossed the 1 lakh mark since October, when they were at 1.45 lakh.
Industry leaders attributed the growth to widespread monsoon coverage and healthy rural sentiment. Tractor exports also rose 6.8% on-year to 8,936 units, also translating to a 24.5% month-on-month increase.
With this, first half 2025 tractor sales are up 12.4% at 4.87 lakh.
June’s performance follows signs of recovery seen earlier in the year. In March 2025, domestic sales rose 25.4% on-year to 79,946 units, supported by the onset of the Indian New Year and festive buying.
In June, Mahindra & Mahindra’s Farm Equipment Business continued its strong momentum, recording domestic sales of 51,769 units—up 13% from 45,888 units in June 2024. Total sales, including exports, stood at 53,392 units, compared to 47,319 in the year-ago period. The company exported 1,623 tractors during the month, also registering 13% growth on-year. For the January–June 2025 period, Mahindra’s domestic sales reached 129,199 units, marking a 10% increase over 116,930 units sold in the same period last year.
Veejay Nakra, President of the Farm Equipment Business at Mahindra & Mahindra, said the growth was driven by "cash flows from rabi crop harvesting and widespread monsoon arrival across most regions." He added that "improved rainfall patterns have supported land preparation activities for the upcoming kharif season."
The company also pointed to record foodgrain production in rice, wheat, and pulses, along with government schemes aimed at enhancing farm incomes, as factors expected to support demand in the coming months.
Escorts Kubota Ltd. reported a mixed performance in June 2025, with total tractor sales rising 2.2% on-year to 11,498 units, up from 11,245 units in June 2024. Domestic sales saw a marginal decline of 0.1% to 10,997 units, while exports surged 114.1% to 501 units from 234 units a year ago.
Despite market challenges, the company maintained a positive outlook, citing improved conditions in the farm economy. “The timely arrival of the southwest monsoon, improved sown area for kharif crops, and the government's announcement of higher Minimum Support Prices for the kharif season collectively supported farmer confidence,” the company said.
Sonalika Tractors also reported a strong quarter, with April–June 2025 marking its highest-ever Q1 performance. The company sold 43,603 units in the period, including what it described as its best-ever June performance.